Saudi Aramco’s Profits Dip as Oil Prices and Refining Margins Slide

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Saudi Aramco’s Q3 profit took a hit, declining to $27.56 billion from $32.58 billion last year due to weaker oil prices and tumbling refining margins. The company’s refining segment, responsible for transforming crude into fuel, swung to a $1.78 billion loss, a stark drop from last year’s $5.26 billion profit. Meanwhile, Aramco’s average crude price fell to $79.3 per barrel, compared to $89.3 last year, amid global demand concerns and a flooded market pushing oil prices to three-year lows.

In response, OPEC+, with Saudi Arabia and Russia at the helm, decided over the weekend to extend voluntary production cuts through year-end, seeking to stabilize the market.

Aramco’s upstream earnings, covering oil and gas extraction, also dipped 13% to $52.82 billion on softer prices and slightly lower output. Aramco’s substantial dividend payments remain crucial for Saudi Arabia’s economy, supporting its ambitious diversification plans. The company expects to distribute $124.2 billion in dividends this year, reinforcing its critical role in Saudi Arabia’s broader economic vision.